In a recent interview with The Times, BlackRock CEO Larry Fink confirmed the firm has been increasing its UK investments, citing renewed confidence in the country’s economic direction. “We’ve allocated more capital back to the UK tactically,” he said, noting that the new administration appears committed to tackling difficult issues.
Fink’s endorsement offers a timely boost to the Labour government, which faced a downgrade in growth forecasts this week from 1.6% to 1.1% by the IMF. He praised the prime minister’s focus on growth, saying, “I have more confidence in the UK economy today than I did a year ago,” and welcomed the pro-growth rhetoric emerging from the Treasury and Whitehall.
BlackRock sees UK assets as “undervalued,” contributing to its increased exposure. Fink added that while he’s unsure what exactly has shifted in government policy, “it is a good change.”
Earlier this year, the Labour government replaced CMA chair Marcus Bokkerink with Doug Gurr to align with Chancellor Rachel Reeves’ growth-focused agenda.
